Using the FHSA, RRSP and TFSA together
Last reviewed October 30, 2026
You don't have to choose one account. First-time buyers can use the FHSA, the RRSP Home Buyers' Plan and a TFSA toward the same home. The order you fill them, and draw from them, can make a meaningful difference.
How the three compare
| FHSA | RRSP (Home Buyers' Plan) | TFSA | |
|---|---|---|---|
| Tax deduction going in | Yes | Yes | No |
| Tax on withdrawal for a home | None | None, if repaid | None |
| Repayment required | No | Yes, over 15 years | No (room restored next year) |
| Home-buying limit | $40,000 lifetime contributions | $60,000 withdrawal | Your available room |
| Restrictions on use | Qualifying first home | Qualifying home; 90-day rule | None |
A sensible order for most people
- FHSA first. You get a deduction going in and tax-free withdrawals, with nothing to repay. Contribute the annual maximum if you can, and open the account early so room starts accumulating.
- Then a TFSA for additional savings, especially money you might need for closing costs, moving or emergencies. TFSA funds are completely flexible.
- RRSP via the HBP as a top-up. It's especially useful if you already have RRSP savings, for example from a workplace plan. Remember the repayments and the 90-day rule.
This order isn't right for everyone. If your income is high, RRSP deductions are especially valuable, and an advisor might suggest a different mix. If you're unsure you'll buy, the FHSA's ability to transfer to an RRSP makes it low-risk anyway.
A hypothetical London couple
These figures are illustrative only. Alex and Jordan, both first-time buyers, plan to buy a London townhouse in about three years.
- They each open an FHSA and contribute $8,000 a year for three years: $48,000 combined, plus any growth, all tax-free on withdrawal. Their contributions also generate tax refunds each year, which they put into their TFSAs.
- Jordan has $20,000 in a workplace RRSP and could withdraw it under the HBP, repaying about $1,333 a year over 15 years.
- They keep $15,000 in TFSAs for closing costs and a moving and emergency cushion.
On a $520,000 home, the minimum down payment is $27,000 (5% of $500,000 plus 10% of $20,000). With $48,000 from their FHSAs, they could put down considerably more than the minimum, reducing their mortgage insurance premium and monthly payment. They might decide to leave Jordan's RRSP alone. If neither has ever owned a home, they'd also qualify for Ontario's land transfer tax refund (up to $4,000 for the purchase) and could share the home buyers' tax credit.
More down payment vs more cushion: putting every dollar into the down payment isn't always best. Keeping a few months of expenses in reserve protects you from surprises in your first year of ownership: a furnace repair, a job change, a special assessment.
Timing the withdrawals
- Deposit: due soon after your offer is accepted. Keep enough in an accessible account (a cash TFSA or high-interest savings) to cover it without waiting on an FHSA or HBP withdrawal.
- Down payment: due to your lawyer just before closing. Request FHSA and HBP withdrawals a few weeks ahead so funds arrive in time.
- Proof of funds: lenders will want to see where your down payment is coming from, often with 90 days of statements. Keep records of transfers between accounts.
What about family help?
Family members can give you money, and you can contribute it to your own FHSA (within your room) to get the deduction. Gifted funds have documentation requirements with lenders. See gifted down payments.
Get advice for your situation
The right mix depends on your income, tax bracket, retirement savings, timeline and risk tolerance. A fee-only financial planner or your bank's advisor can model it for you. Bring your FHSA, RRSP and TFSA room from CRA My Account.